Law on Public Corporation- Largo Maria Ignacia A.

Alba

The distribution of these The distribution of

Law on Public Corporation (Largo) powers may either be: governmental powers
among at least 2 levels of
Complete – In most government guarantees
CHAPTER 1 Presidential Systems, such liberty and democracy.
as in the US and the Ph,
INTRODUCTION there is complete Alexis de Tocqueville-
separation of powers “The strength of free
The Different Meanings and Concepts of “Local among the 3 branches, nations resides in the local
Government” (LG) EXCEPT to some extent community. Local
that some of these institutions are to liberty,
1. Distribution of Powers to LG as Limitation to
governmental powers are what primary schools are
Political Authority
shared by constitutional to science; they bring it
The idea of distributing these governmental powers is fiat. within people’s reach,
of the basic and minimum characteristics of the concept they teach people to use
of the rule of law. Partial – In most and enjoy it. Without local
Parliamentary Systems, institutions, a nation may
Rule of Law there is only partial establish a free
distributions of these government, but it cannot
The concept which suggests that political authority powers as both legislative have the spirit of liberty.”
should be limited. and executive are fused in
Ways of Limiting Political Authority: one agency, resulting in Maass (Area and Power)-
having a Chief Executive, “Local government is
1. Providing for certain PROCEDURES in the say a Prime Minister, who presented as a manner of
manner of exercising the powers of government is also the Head of the dividing power by area of
(as in the case of law-making process) Legislative. territory.”

2. Providing for certain PROHIBITION against There are systems of Ylvisaker-

unwarranted exercise of governmental power government though which “Local government
(such as those found in the Bill of Rights of combine certain promotes liberty by
Constitutions) characteristics of providing additional and
Presidential and more readily available
3. DISTRIBUTING POWERS, horizontally or Parliamentary Systems, as points of access, pressure
vertically, the powers of the government in in the case of France. and control; it promotes
order to prevent over-concentration of powers equality by providing for a
in one branch or agency of the government. wide-scale participation
and fostering, on the part
Ways of distributing the powers of government: of the government,
responsiveness and
Horizontal Distribution Vertical Distribution flexibility. It provides
The powers of the The powers of the gov’t welfare, or service in
government are are distributed among at terms of assuring that
distributed among the 3 least 2 levels of gov’t, the demands will be heard
branches of the national upper and lower level. At and the needs will be
government (NG), namely: the upper level is the served.
legislative, executive, and national gov’t, the gov’t of
judicial branches of the the whole country. At the
government. lower level is the local
gov’t, the gov’t of the
parts.
Law on Public Corporation- Largo Maria Ignacia A. Alba

2. LG as Political and Territorial Subdivisions of the The International Union of Local Authorities, for
State example, refers to LG as “geographic subdivisions”.

LG is a political subdivision of a nation or state which is Two Elements in Any Definition of LG

constituted by law and has substantial control over local
affairs. 1. Presence of Higher Authority
2. Territorial Boundary
Acc. to Sec. 15 of the LGC, LG is a body politic and
corporate endowed with powers to be exercised in Political and Territorial Subdivisions in the Philippines
conformity with law. It shall exercise its powers as a
1. Provinces
political subdivision of the NG.
2. Cities
Systems of Government 3. Municipalities
4. Barangays
Recognizing at least 2 levels of government also signify
that LG are political and territorial government relate to **The Muslim Mindanao and the Cordilleras are
each other is the concern of the study of local considered Autonomous Regions.
governments. The power relations between these levels
The State is politically and territorially subdivided into
of government vary depending on the system of local
different provinces and cities (independent and highly
government adopted by a certain jurisdiction.
urbanized). A province is further politically and
Unitary Federal territorially subdivided into municipalities and/or
The NG supervises the LG LG are supreme within component cities, while independent and highly
affairs, as the LG derive their own spheres such urbanized cities are further subdivided into barangays.
both their existence and that they actually become Municipalities and component cities are also further
powers of the NG. “quasi-sovereign” states subdivided in barangays.
also still subordinate to Cluster of Barangays- compose a Municipality or City
the NG in some respects,
such as in the areas of Cluster of Municipalities and/or Component Cities-
foreign affairs, defense, compose a Province.
currency, and commerce.
STATE
Subordination
CITIES
The element of subordination appears in any definition (INDEPENDENT &
of LG for by nature, LG are subordinate entities, having PROVINCES HIGHLY QUALIFIED)
no inherent power and having to look up to the higher
governmental level for delegation of authority.

The United Nations, defines LG as political subdivisions MUNICIPALITIES BARANGAYS

of a nation or state. Some authorities refer to them as
COMPONENT
“parts” of the government of a nation or state “of a
CITIES
country”, non-sovereign communities with
“subordinate status”, governments which are “below
the central or senior government”. BARANGAYS

Territorial Boundary

However, the concept of LG does not only connote

higher authority, it also includes territorial boundary of
governance.
Law on Public Corporation- Largo
3. LG as Municipal Corporations
Corporation
Kyd defines a corporation, or a body politic, or body
incorporate as a collection of individuals united in one
body, under a special denomination, having perpetual
succession under an artificial form, and vested by the
policy of the law with the capacity of acting in several
respects as an individual, particularly of taking and
granting property, of contracting obligations, and of
suing and being sued; of enjoying privileges and
immunities in common, and of exercising a variety of
political rights, more or less extensive, according to the
design of its institution, or powers conferred upon it,
either at the time of its creation, or at any subsequent
period of its existence.
What distinguishes Corporations from Associations of
Individuals joined together to accomplish some purpose
The distinguishing feature, says Nelson, C. J. is the
capacity conferred by which a perpetual succession of
different persons shall be regarded in the law as one
and the same body, and may at all times act in the
fulfillment of the objects of the association as a single
individual.
In this way, a legal existence, a body corporate, an
artificial being is constituted.
LG as Municipal Corporations
LG are essentially municipal corporations. As such, it is a
body politic and corporate constituted by the
incorporation of the inhabitants of a city or town for the
purpose of LG thereof.
Municipal Corporations (MC)
MC are established by law partly as an agent of the
state to assist in the civil government of the country,
but chiefly to regulate and administer the local internal
affairs of the city, town, or district incorporated.
Maria Ignacia A. Alba
Dual function of the LG
Acc. to Sec. 15 of the LGC, each LGU created or
recognized under this Code is a body politic and
corporate endowed with powers to be exercised in
conformity with law. It shall exercise powers:
1. As a political subdivision of the NG, and
2. AS a corporate entity representing the
inhabitants of its territory.
Distinct Legal Personality
The corporation is therefore legally considered distinct
from its members.
Local Government Systems in the Philippines
1. History of Local Governments in the Philippines
 Before the arrival of Spaniards, there were
already ancient community governments
headed by the Datu who exercised all 3
governmental powers, often upon consultation
with a Council of Elders. Pre-Spanish Barangays
(Balangays) are organized and headed by the
Datu. However, these were not yet perceived as
LG but had the status of city-states, which were
independent and not subordinate to any higher
government.
 When Spandiards came, centralization became
their tool in colonizing and controlling. Parcels
of lands (encomiendas) were given to some
privileged and favored persons. They also
created cabildos (cities), pueblos
(municipalities), and provincias (provinces).
Barangays were reduced into barrios and Datus
were demoted into Cabeza de Barangays whose
only function was to assist the higher levels of
govt in collecting tribute. The powerful
Barangays become the lowest rung in the
ascending order or government power.
Law on Public Corporation- Largo
 While the Philippine Republic organized by
Aguinaldo and Mabini gave more attention to
local units, autonomy could not be given the LG
because at the time, it was important to retain
unity of the islands. Centralism remained.
 When Americans came, they continued
centralization. They renamed the units into
provinces, cities, and municipalities but kept the
hierarchal chain of command from Manila
undisturbed.
 Centralism thrived in the Philippines and was
kept by the Ph Gov’t. The 1935 Consti
mentioned LG in only one section (Pres exercise
supervision over LG).
 Until 1972, the Pres and Congress determined
the relationship between the NG and the LG by
statutes and executive orders, and they were
interpreted by the Courts.
 Martial Law in 1972 strengthened the Pres’s
power over LG, despite the 1973 Consti and
creation of a Department of Local Government
and Community developed by virtue of PD no 1.
By PDs, Pres. Marcos created and abolished
offices, rapidly changing the relationship
between NGs and LG.
 After the People Power in 1986, the NG became
more responsive to the lower units of the
government. The 1987 Consti provided for
special forms of LG in response to ethnic
peculiarities in Muslim Mindanao and the
Cordilleras. Moreover, Congress passed the LGC
of 1991, which was far-reaching in national-
local relations because it provided for
devolution of powers and services.
Maria Ignacia A. Alba
2. Structures and Systems of Philippine LG
2.1 CREATION
Creatures of the Government
Although the LGC provides for a devolution of powers,
the Ph remains a unitary state. LG are creatures of the
NG.
The NG by law:
a. Creates, merges, or abolishes LGU,
b. Endows them with powers within their
jurisdiction, and
c. Determines national-local gov’t relations.
Plebiscite
While these LGU may be created by law (or by
ordinance in case of certain barangays), the Code
mandates that the residents of the areas affected by the
creation should approve the measure in a plebiscite.
2.2 TIERS OF LG
Several levels of local authority
a. Province is the intermediate unit providing
supervision to the Municipalities and Compnent
Cities under it, and performing services for NG.
b. Cities and Municipalities (and Barangays) are
the basic unit of LG or those performing
services for people who live together in a
community.
c. Barangay is a submunicipal unit which provides
for the opportunity for face to face interaction
among the people.
Law on Public Corporation- Largo Maria Ignacia A. Alba

Highly Urbanized Cities (HUC) Classification of Corporations

Those which are considered viable enough to perform Public Corporation It is one that is organized
their functions and services, and thus are allowed to for government of a
retain their AUTONOMY from the province. portion of a sate, such as
LGU.
a. At least 200,000 inhabitants It is created for public use
b. 50 million income (100 mil in case of cities Private Corporation It is one that is formed for
some private purpose,
created from a cluster of barangays or in the
benefit, aim, or end, such
case of municipalities converted to cities under
as a business corp formed
RA 9009. and organized under a
general law on corp.
Residents of HUC do not vote for municipal officials. Createdfor private objects.
Quasi-Public Corpo It is a private corporation
Component Cities
that renders public service
Under the direct SUPERVISION of municipalities. or supplies public wants,
such as utility companies.
2.3 UNITARY SYSTEM OF GOVERNMENT It combined the elements
of both public and private
Agents Though organized for
private profit, they are
In a Unitary System, municipal governments are only compelled by law or
agents of the NG. Local councils exercise only delegated contract to render public
legislative powers conferred upon them by Congress. service.
Special Classes of Corp. that are recognized as such
The delegate cannot be superior to the principal or
generally by reason of equitable considerations
exercise powers higher than those of the latter.

Congress still retains control of the LGU. The power to De Facto Corp The consent of the state is
implied and conditions of
grant still includes the power to withhold or recall.
corp. are not substantially
complied with
Chapter 2
Corp by Prescription A body of men have been
GENERAL PRINCIPLES for a long time in the
exercise of corp. power, a
Corporations presumption rises
Corp by Estoppel As against the state a corp
An artificial being created by operation of law having cannot be created by mere
the right of succession and the powers, attributes, and agreements or acts or
properties expressly authorized by law or incident to its omissions of private
persons, as between
existence.
private litigants
themselves, they may by
their agreements,
admissions, or conduct,
place themselves where
they would not be
permitted to deny the fact
of the existence of the
corp (-Fletcher)
Law on Public Corporation- Largo Maria Ignacia A. Alba

Public and Private Corporations, distinguished MC and QPC, distinguished

Public Corporation Private Corporation Quasi- Corp Municipal Corp

Established for the
purposes connected with
the administration of civil
or local governments.
Creations of the state
either by general or
special act.
Created for private aim,
gain or benefits of its
members.
Created by the will of the
incorporators with the
recognizance of the state.
Hence constitute
voluntary agreement by
and among the members
thereof.
Private nature and object, Object is public, although
with incidents only that incidents connected with
public. it may be of private
nature, and so far as it is
subject to the rules of
liability controlling private
corp in the ownership of
property.
Only corp standing as the
representative of the
purely public corp.

Test in Determining whether Public or Private

1. The purpose of its creation – If created as an
agent of the State to carry out governmental
functions, then it is public, otherwise, it is
private.
2. Relation to the State – Created by the state as
its own agency or instrumentality in carrying
out governmental functions, it is public,
otherwise it is private.
**True test to determine is not just the purpose but the
relation.
Public Corporation, classified
Quasi- Corp Municipal Corp
Created by the State for a A body politic and
limited purpose corporate constituted by
the incorporation of the
inhabitants for the
purpose of LG (LGU)
It is a perfect public corp,
established under and by
virtue of a sovereign act of
legislation, uniting people
and land within a
prescribed boundary into
a body corporate and
politics for the purpose of
local and self-government,
and invested with the
powers nece therefore
Elements of Municipal Corp (Le-Cor-I-T)
1. Legal Creation/Incorporation (law)
2. Corporate Name (name under it is incorp and
known and in which all corp acts are done)
3. Inhabitants (natural persons)
4. Territory (land mass where inhabitants reside)
Changing the Name
Under the LGC, the Sangguniang Panlalawigan may, in
consultation with the Philippine Historical Institute,
change the name of component cities and
municipalities, upon the recommendation of the
Sanggunian concerned provided that the same shallbe
effective only upon plebiscite
Dual Nature and Function of Municipal Corp
Governmental Func Proprietary Func
Admin of power of the For special benefit and
state and promoting the advantage of the
public welfare community and for
attainment of their
collective need
Importance of the Distinction of these Functions
1. Liability for its acts and those of their officers
2. Extent of legislative control over the same
Law on Public Corporation- Largo Maria Ignacia A. Alba
Sources of Power of Philippine Local Governments Chapter 3

1. 1987 Constitution (Sec 25, Article II, Sec -7, THE CONCEPTS OF LOCAL AUTONOMY,
Article X) DECENTRALIZATION, DEVOLUTION AND
2. LGC of 1991 (RA 7160) DECONCENTRATION
3. Their Charters
4. Other laws, decrees, Eos, proclamations and Local Autonomy (LA)
administrative regulations LA signifies a more responsive and accountable LG
Classification of Powers structure instituted through a system of
decentralization. The grant of autonomy is intended to
Under the LGC and IRR, LG may exercise 4 general kinds break up the monopoly of NG over the affairs of LG not
of powers: to end the relation of partnership and independence
between the central administration and LGUs. LG are
1. Those expressly granted to them still subject to regulation, however limited, for the
2. Those implied from those granted to them purpose of enhancing self-government.
3. Those that are necessary, appropriate, or
incidental for their efficient and effective Classification of Autonomy
governance
4. Those that are essential to the promotion of Decentralization of Decentralization of
Administration Power
general welfare of their inhabitants.
The central government Involves an abdication of
Kinds of Municipal Corporations delegates administrative political power in favor of
power to political LGU declared to be
De Jure De Facto subdivisions in order to autonomous.
If its creation perfectly Not all requirements were broaden the base of
complies with all the complied with in its governmental powers and The autonomous
requirements of incorporation but there in the process make LG government is free to
incorporation. are at least: more responsive and chart its own destiny and
accountable. shape its future with
1. Valid law auth It relieves the central minimum intervention
incorporation government of the burden from central authorities.
2. Attempt in good of managing local affairs
faith to organize it and enables it to Amounts to self-
3. Colorable concentrate on national immolation since the
compliance with concerns. autonomous government
law President exercises becomes accountable not
4. Assumption of general supervision over to the central authorities
corporate powers them but only to ensure but to its constituency.
that local affairs are
administered acc to law.
he has no control over
their acts in the sense that
he can substitute his
judgements with his own/
Under the supervision of Subject alone to the
the NG acting through the decree of the organic act
President (and the creating it and accepted
Department of Local principles on the effects
Government) and limits of autonomy.
Law on Public Corporation- Largo
The Supreme Court noted that under the Philippine
concept of LA, the NG has not completely relinquished
all it powers over LG, including autonomous regions.
Only administrative powers over local affairs are
delegated to political subdivisions.
LA involved a mere decentralization of administration,
not of power, in which local officials remain accountable
to the central government. Autonomy does not
contemplate making mini-states out of LGUs.
Autonomy, in the constitutional sense, is subject to the
guiding star, although not control, of the legislature. It is
to prevent overdependence on central government.
LA is not self-executing but is subject to, among other
things, the passage of a LGC, a local tax law and
measures designed to realize autonomy at the local
level.
Fiscal Autonomy (FA)
FA means that LG have the power:
1. To create their own sources of revenue in
addition to their equitable share in the national
taxes released by the NG, as well as power
2. To allocate their resources in accordance with
their own priorities.
FA extends to the preparation of their budgets, and
local officials in turn have to work within the constraints
thereof. They are not formulated at the national level
and imposed on LG, whether they are relevant to local
needs and reasonable or not.
Autonomous Regions
While LA refers to decentralization of administrative
powers, the creation of autonomous regions in Muslim
Mindanao and the Cordilleras contemplates the grant of
political autonomy and not just administrative
autonomy to these regions. (Executive department,
legislative assembly and special courts with personal,
family and property law jurisdiction in each of the
autonomous regions)
System of Decentralization
Maria Ignacia A. Alba
The State is mandated to provide for a more responsive
and accountable LG structure instituted through a
system of decentralization whereby LGUs shall be given
more powers, authority, responsibilities, and resources.
The process of decentralization shall proceed from the
NG to the LGUs.
Operative Principles that guide the formulation and
implementation of policies and measures of LA
(P-O-L-A-R G-O) (C-E-Q-Co) (Pri-De)
1. Effective allocation among diff LG of their
respective powers, functions, responsibilities,
and resources
2. Established in every LGU an accountable,
efficient, and dynamic organizational structure
and operating mechanism that will meet the
priority needs and service requirements of its
constituents
3. Subject to civil service law, rules, and
regulations, local officials and employees paid
wholly or mainly from local funds shall be
appointed or removed, according to merit and
fitness, by the appropriate appointing authority
4. The vesting of duty, responsibility, and
accountability in LGUs shall be accompanied
with provision for reasonably adequate
resources to discharge their powers and
effectively carry out their functions; hence, they
shall have the power to create and broaden
their own sources of revenue and the right to a
just share in national taxes and an equitable
share in the proceeds of the utilization and
development of national wealth within their
respective areas
5. Provinces with respect to component cities and
municipalities, and cities and municipalities with
respect to component barangays, shall ensure
that the acts of their component units are
within the scope of their prescribed powers and
functions
6. LGUs may group themselves, consolidate or
coordinate their efforts, services, and resources
for purposes commonly beneficial to them
Law on Public Corporation- Largo Maria Ignacia A. Alba
7. The capabilities of LGUs, especially Devolution Deconcentration
municipalities and barangays, shall be enhanced The act by which the NG Refers to the transfer of
by providing them with opportunities to confers power and authority and power to
participate actively in the implementation of authority upon the various the appropriate regional
LGUs to perform specific offices or field offices of
national programs and projects
functions and national agencies or
8. There shall be a continuing mechanism to responsibilities. It shall offices whose major
enhance LA not only by legislative enabling acts include the transfer to functions are not devolved
but also by administrative and organizational LGUs of records, to LGUs.
reforms equipment, and other
9. LGUs shall share with the national government assets and personnel of
national agencies and
the responsibility in the management and
offices corresponding to
maintenance of ecological balance within their
the devolved powers,
territorial jurisdiction, subject to the provisions functions, and
of this Code and national policies responsibilities.
10. Effective mechanisms for ensuring the National agencies or The NG is mandated to
accountability of LGUs to their respective offices concerned shall effect deconcentration
constituents shall be strengthened in order to devolve to LGU the within 6 months after
responsibility for the effectivity of the LGC
upgrade continually the quality of local
provision of basic services
leadership
and facilities enumerated
11. The realization of LA shall be facilitated through in Sec. 17 within 6 months
improved coordination of national policies and after effectivity of LGC.
programs and extension of adequate technical
and material assistance to less developed and GR: Public works and
deserving LGUs infrastructure projects and
other facilities, programs
12. The participation of the private sector in the LG
and services (1) funded by
particularly in the delivery of basic services, the NG under the GAA,
shall be encouraged to ensure the viability of LA other special laws, EO, and
in an alternative strategy for sustainable (2) those wholly funded
development from foreign sources are
13. The national government shall ensure that not covered by Sec. 17 on
decentralization contributes to the continuing devolution,
EXP: unless the LGU is duly
improvement of the performance of LGUs and
designated as
the quality of community life. implementing agency for
such project.
What is the centerpiece of LGC? -The system of
Devolution does not
decentralization as expressly mandated by the prohibit the NG or next
Constitution. higher level of LG from
providing or augmenting
Construction - Indispensable to decentralization is the basic services and
devolution and the LGC expressly provides that any facilities assigned to a
provision on a power of a LGU shall be liberally lower level of LGU when
interpreted in its favor, and in case of doubt, any such services are not
question thereon shall be resolved in favor of made available or if made
available are inadequate
devolution of powers and of the lower LGU. Any fair and
to meet the requirements
reasonable doubt shall be interpreted in favor of the
of its inhabitants.
LGU concerned.
Law on Public Corporation- Largo Maria Ignacia A. Alba
Summary of this Chapter Political Subdivisions

LA refers to the degree of self-determination exercised Barangay As the basic political unit,
by LGUs vis-à-vis central government. it serves as the primary
planning and
To achieve LA, a system of decentralization of a pre- implementing unit of
requisite. government policies,
plans, programs, projects,
To effect this system of decentralization, a process and activities in the
called devolution is applied. community, and as a
forum wherein he
But when the process involves offices, and not to LG, collective views of the
involving administrative functions, it is properly called people may be expressed,
deconcentration. crystallized and
considered, and where
Chapter 4 disputes may be amicably
settled.
LOCAL GOVERNMENT AND UNIONS OR FEDERATIONS Municipality It consists of a group of
OF LOCAL GOVERNMENTS IN THE PHILIPPINES barangays. It serves
primarily as a general
Local Units and Autonomous Regions purpose government for
the coordination and
Constitutional Provsion delivery of basic, regular
and direct services and
The Constitution provides that “the territorial and effective governance of
political subdivisions of the Republic of the PH are the the inhabitants within its
provinces, cities, municipalities, and barangays. There territorial jurisdiction.
shall be autonomous regions in Muslim Mindanao and City It consists of more
urbanized and developed
the Cordilleras as hereinafter provided”.
barangays. It serves as a
general-purpose
Effect of the Consti Provision
government for the
The Constitution does not create LGUs. A particular LGU coordination and delivery
of basic, regular, and
should still be created by law. It only constitutionally
direct services and
ensures the existence of these territorial and political effective governance of
units in our structure. the inhabitants within its
territorial jurisdiction.
Hence, a law cannot, for example, abolish barangays Province It is composed of a cluster
because constitution ensures existence. of municipalities, or
municipalities and
LGUs vs. ARs component cities, and as a
political and corporate
Regular LGUs Autonomous Regions
unit of government. It
1. Provinces Muslim Mindanao and serves as a dynamic
2. Cities Cordilleras mechanism for
3. Municipalities developmental processed
4. Barangays and effective governance
of LGUs within its
territorial jurisdiction.
Law on Public Corporation- Largo
Classification of Cities
Highly Urbanized Comply with the statutory
requirements on income
(50 mil)
Independent CC Cities whose charters
prohibit their voters from
voting and be voted for
provincial elective officials
Component Cities All other cities. The voters
of CC within a province,
whose charters contain no
prohibition, shall not be
deprived of their right to
vote for elective provincial
officials.
Special Metropolitan Political Subdivisions (SMPS)
Creation
Congress may by law create SMPS, subject to a
plebiscite as set forth in Section 10, Article X of the
Constitution. The CC and Municipalities shall retain their
basic autonomy and shall be entitled to their own local
executives and legislative assemblies.
Jurisdiction
Maria Ignacia A. Alba
resources for purposes commonly beneficial to them in
acc with law.
Creation
LF may be created through appropriate ordinances
enacted by the LGUs concerned as they may group
themselves, consolidate or coordinate their efforts,
services and resources for purposes commonly
beneficial to them.
LGUs involved may, (1) upon approval by the
sangguniang concerned and (2) after a public hearing
conducted for the purpose, contribute funds, real
estate, equipment and other kinds of property and
appoint or assign personnel under such terms and
conditions as may be agreed upon by the participating
LGUs through (3) Memoranda of Agreement.
The Federation, however, cannot be considered a new
corporate body.
Regional Development Councils (RDC)
Creation
RDCs are established by the President without need of
authorization from Congress.

Limited to basic services requiring coordination.
Not separate LGUs
SMPS are not legally considered separate LGUs, such
that the metropolitan authority cannot exercise political
powers, though the creation of a metropolitan authority
still requires plebiscite.
The ‘merger’ of LGUs into a new LGU, or SMPS or AR is
basically a legislative function. However, the creation of
‘administrative regions’ is traditionally an executive
function being essentially part of the supervisory power
of the President over LGUs. However, these
Administrative Regions are not meant to be separate
LGUs.

MMDA vs. Bel-Air Village Composition

MMDA is not a SMPS because there was no plebiscite The President shall provide for RDCs are other similar
when it was created and the President exercises not just bodies composed of LG officials, Regional Heads of
supervision but control over it. MMDA has purely Departments and other government offices,
administrative functions. representatives from NGOs within the regions.

Loose Fedarations (LF) Purpose

LGUs may enter into some Loose Federations of LGUs. For the purpose of administrative decentralization to
Acc to the LGC, the LGUs may group themselves, strengthen the autonomy of the units therein and to
consolidate or coordinate their efforts, services, and accelerate the economic and special growth and
development of the units the region.
Law on Public Corporation- Largo
Chapter 5
THE LOCAL GOVERNMENT CODE OF 1991
Constitutional Mandate
The Constitution mandates Congress to enact a LGC
which shall:
 provide for a more responsive and accountable
LG structure instituted through a system of
decentralization
 with effective mechanisms as recall, initiative,
and referendum,
 allocate among the different LGUs their
powers, responsibilities, and resources, and
 provide for the qualifications, elections,
appointment and removal, term, salaries,
powers and functions and duties of local
officials and
 all other matters relating to the organization
and operation of local units.
Hence, RA 7160 was enacted into law in 1991 and
became effective on January 1, 1992.
Why was the LGC enacted
The realization that genuine development can be
achieved only by strengthening LA and promoting
decentralization of governance. A highly centralized
government structure has bred a culture of dependence
among LG leaders upon national leadership.
Scope of Application
The LGC applies to:
a. all provinces, cities, municipalities, barangays,
and other political subdivisions as may be
created by law, and
b. to the extent herein provided, to officials,
offices, or agencies of the NG.
LGUs in the Autonomous Regions
It shall apply to all P,C,M, and B in the Autonomous
Regions until such time as the regional government
shall have enacted its own LGC
Maria Ignacia A. Alba
All existing tax ordinances or revenue measures of
LGUs
GR: They shall continue to be in force and effect after
the effectivity of the Code
EXP: unless (1) amended by the sanggunian concerned,
or (2) inconsistent with, or (3) in violations of the
provisions of the Code.
Inconsistent general and special laws, acts, city
charters, decrees, EOs, proclamations and
administrative regulations, or parts thereof
Repealed or modified accordingly.
Rule of Interpretation
a. Any provision on a power of LGU shall be
liberally interpreted in its favor, and in case of
doubt, any question thereon shall be resolved in
favor of devolution of powers and of the lower
LGU. Any fair and reasonable doubt as to the
existence of the power shall be interpreted in
favor of the LGU concerned.
b. In case of doubt, any tax ordinance or revenue
measure shall be construed strictly against the
LGU enancting it and liberally in favor of the
taxpayer. Tax exemption, incentive or relief
granted by LGUs pursuant to LGC shall be
construed strictly against the person claiming it.
c. The general welfare provisions in the Code shall
be liberally interpreted to give more power to
LGUs in accelerating economic development
and upgrading the quality of life for the people
in the community.
d. Rights and obligations existing on the date of
effectivity of the Code and arising out of
contracts or any other source of prestation
involving a LGU shall be government by the
original terms and conditions of said contract or
the law in force at the time such rights were
vested.
e. In the resolution of controversies arising under
the Code where no legal provision or
jurisprudence applies, resort may be had to the
Law on Public Corporation- Largo Maria Ignacia A. Alba
customs and traditions in the place where the population, as
controversies take place. expected of the LGU
Population It shall be determined
Chapter 6 as the total number of
inhabitants within the
CREATION, CONVERSION, DIVISION, MERGER, territorial jurisdiction
SUBSTANTIAL CHANGE OF BOUNDARY OF LGUs of the LGU
AND ABOLITION Land Area It must be contiguous,
unless it comprises 2 or
Political Subdivisions more islands or is
separated by a LGU
Section 10, Article X of the 1987 Constitution provides: independent of the
others; properly
No P,M,C or B shall be created, divided, merged, identified by metes
abolished or its boundary substantially altered, and bounds with
except (1) in accordance with the criteria technical descriptions
established in the LGC and (2) subject to approval and sufficient to
by a majority of the votes cast in a plebiscite in the provide for such basic
services and facilities
political units directly affected.
to meet the
requirements of its
**read League of Cities vs. COMELEC page 37.
populace.
**read Province of North Cotabato vs GRP page 43.

Creation and Conversion Compliance with these indicators shall be attested to by

the:
1. General Requirements:
 Department of Finance
a. Law (power to create cannot be delegated by  National Statistics Office
Congress absent constitutional provisions  Land Management Bureau of the DENR
permitting it to any inferior and subordinate
tribunal or board) Income
b. Plebiscite – it is required in order to enable the
As defined in the LGC, all revenues and receipts
registered voters of a locality affected by the
collected or received forming the gross accretion of
creation, division, merger, abolition, or
funds of the LGU.
alteration of the boundaries of a LGU to check
the power of the Congress or LGU concerned to Annual Income
carry out such actions.
c. Compliance with Criteria on Income, Land Area Department of Finance Order No. 35-93 defined annual
and Population income to be revenues and receipts realized by
provinces, cities, and municipalities from regular
Income It must be sufficient, sources of the Local General Fund including the internal
based on acceptable revenue allotment and other shares provided for in Sec.
standards, to provide 284, 290 and 291 of the LGC, but exclusive of non-
for all essential
recurring receipts, such as other national aids, grants,
government facilities
and services and financial assistance, loan proceeds, sales of fixed assets,
special functions and similar others.
commensurate with
the size of its Internal Revenue Allotments (IRAs)
Law on Public Corporation- Largo Maria Ignacia A. Alba
IRAs are items of allotment because they form part of
the gross accretion of the funds of the LGU. The IRAs
regularly and automatically accrue to the local treasury
without need of any further action on the part of the 2. Specific Requirements:
LGU.
How Created:
In case of conversion of a municipality into a city or a
cluster of barangays to be formed into a new CC Barangay -Law or
because of RA 9009 (amended Sec 450 of LGC) -By ordinance of the
Sangguniang Panlalawigan
IRAs are no longer included in the computation of the (recommendation of the
annual income for purposes of complying with the Sangguniang Bayan
income requirement, which was also increase to 100 concerned shall be nece)
-By ordinance
Million from the original 20 Million.
Sangguniang Panlungsod
Inhabitants
Subject to approval by a
There must be inhabitants in order to constitute a LG or majority of the votes cast
in a plebiscite to be
municipal corporation. It should be noted that it is for
conducted by the
the civil government of the inhabitants and the COMELEC in the LGU or
regulation or administration of their local affairs that LGUs directly affected
municipal corporations are constituted. There would be within such period of time
no need for municipal corporation without inhabitants. as may be determined by
the law or ordinance
Territory creating the barangay.

Its boundaries must, as a rule, be definite, fixed or Municipalities, Cities, Act of Congress
certain. In fact, an incorporation is void where the Province
boundaries of the municipal corporation are not Subject to approval by a
described with certainty. majority of the votes cast
in a plebiscite to be
The boundaries must be clear for they define the limits conducted by the
of the territorial jurisdiction of a LGU. It can legitimately COMELEC in the LGU or
LGUs directly affected
exercise powers of government only within the limits of
within such period of time
its territorial jurisdiction. Beyond these limits, its acts
as may be determined by
are ultra vires. the law or ordinance
creating the barangay.
Compliance; Question of Fact
Barangay
Compliance with the criteria on Income, Land and
Population is a question fact. A barangay maybe created to enhance the delivery of
basic services in the indigenous cultural communities by
GR: In admin law, findings of fact by administrative
an Act of Congress, notwithstanding requirements
agencies are generally binding on conclusive. They
enjoy presumption of regularity being government Consolidation Plan for Barangays
agencies.
Prepared by: (1) The governor or city mayor. (2) In case
EXP: unless there is grave abuse of discretion or clear of Municipalities, it shall be prepared and approved by
error of facts. the Sangguniang Bayan.
Law on Public Corporation- Largo Maria Ignacia A. Alba
The plan shall be submitted to the Sangguniang
Panlalawigan or Sangguniang Panlungsod concerned.
Requirements should not be reduced
Tabulation of Specific Requirements:
Division shall not reduce the income, population, or
Income Population Land Area land area of the LGU or LGUs concerned to less than the
Brgy none 2,000 None minimum requirements prescribed in the Code and that
5,000 in Metro the income classification of the original LGU shall not
Manila, SMPS, fall below its current income classification prior to such
and HUC
division.
Muni 2.5 Mil ave. AND 25,000 AND 50
for 2 sq.km, Contiguous or Adjacent
consecutive except if
preceding island GR: The territory to be annexed to a municipality must
years
be contiguous or adjacent.
CC 100 Mil in AND 150,000 OR 100
the case of sq.km Contiguous Adjacent
conversion of
a muni or a Lands that touch the Lying near to, but not
cluster of municipal boundaries. actually touching, the
brgy into a existing boundary of the
city municipality.
HUC 50 Mil latest AND 200,000 Requireme
annual nt for a city
income in general
Provi 20 Mil ave. AND 250,000 OR Consolidation
annual contiguous
income (but territory of  Where 2 or more municipal corporation are
IRR says 2,000 consolidated under one government, the old
average for 2 sq,km (exc
corpo become extinct in most instances, unless
consecutive Isands);
provided in applicable law
years. need not
be  Until common council of the consolidated city
contiguous shall enact a code of ordinances for the
if islands or government of the new municipality, the
separated ordinances of the 2 former cities will be and
cities that remain in force within the territory of the old
do not
cities, respectively.
contribute
to the Substantial Change of Boundaries
income of
the provi No substantial alteration of boundaries of LGU shall
take effect unless approved by a majority of the votes
Merger and Division cast in a plebiscite called for the purpose in the political
unit or units directly affected.
Shall comply with the same requirements prescribed for
their creation.
Law on Public Corporation- Largo Maria Ignacia A. Alba

Settlement of Boundary Disputes (as much as possible Law is required

be settled amicably)
Boundary disputes Shall be referred for
involving settlement to the
2 or more brgys in the Sangguniang Panlungsod
same city or municipality or Sangguniang Bayan
concerned
2 or more municipalities Sangguniang Panlalawigan
within the same province concerned
Municipalities or CC of Jointly referred for
different provinces settlement to the
Sanggunians of the
Provinces concerned
CC or Municipality in one Jointly referred for
hand and a HUC or 2 HUC settlement to the
respective sangguniangs of
the parties
Failure to effect an amicable settlement
If the Sanggunian fails to effect an amicable settlement
within 60 days from the date the dispute was referred
thereto, it shall issue a certification to that effect.
The dispute shall be formally tried by the sanggunian
concerned which shall decide the issue within 60 days
from the date of certification.
RTC
Without law abolishing, even if standards are no longer
met, it still exists. The law must specify which LGU will
be abolished.
Autonomous Regions (Muslim Mindanao and the
Cordilleras)
Autonomous Regions (AR)
They are regions in Muslim Mindanao and the
Cordilleras consisting of PCM and geographical area
sharing common and distinctive historical and cultural
heritage, economic and social structures, and other
relevant characteristics.
Creation Constitution mandates
Congress to enact a law
for each (AR) with the
assistance and
participation of the
regional consultative
commission composed of
representatives appointed
by the President from a
list of nominees from
multisectoral bodies.
+Plebiscite, provided that
only PMC voting favorably
shall be included in the AR

Any party may elevate the decision of the sanggunian

concerned to the proper RTC having jurisdiction over Plebiscite for AR different from Plebiscite in LGU
the area in the dispute. The RTC shall decide the appeal
within 1 year from the filing. Plebiscite in AR Plebiscite in LGU
Determine whether the 1.Determine the will of the
Abolition inhabitants of the affected inhabitants of to create an
political units will approve AR
The power of Congress to dissolve a municipal he creation 2.Determine which LGUs
corporation and terminate its existence. will form part of the newly
created AR (only those
When are LGUs abolished with favorable majority
votes shall comprise the
When its income, land and population has been AR)
irreversibly reduced to less than the minimum
standards.
Law on Public Corporation- Largo Maria Ignacia A. Alba

Status of Cordillera AR (CAR) Principles for De Facto Corporation

Only ARMM has been effectively created as the a. The color of authority requisite to the
plebiscite for the CAR was not successful. The CAR is not organization of a de facto municipal corporation
a public corp or a territorial and political subdv. It does may be:
not have separate juridical personality. It does not have - A valid law
power to sue or be sued, it cannot own and dispose - An unconsti law, valid on its face which has
property, it cannot create its own sources of revenue. either (1) been upheld for a time by the
courts or (2) not yet been declared void;
It is a regional coordinating agency of the NG. provided that a warrant for its creation can
Chapter 7 be found in some other valid law or in the
recognition of its potential existence by the
DE JURE AND DE FACTO MUNICIPAL CORPORATIONS general laws or constitution of the state
b. There can be no de facto muni corp unless
De Jure Corp De Facto Corp
either directly or potentially, such a de jure corp
Its creation perfectly Not all of the
is authorized by some legislative fiat
complies with all the requirements are
requirements of an complied with, provided c. There can be no color of authority in an
incorporation. certain elements are unconsti statute alone, the invalidity of which is
present. apparent on its face.
d. There can be no de facto corp created to take
place of an existing de jure corp, as such
organization would clearly be a usurper
De Facto Corporations
De Facto Municipal Corporation, how tested
One so defectively created as not to be De Jure
Corporation, but nevertheless the result of a bona fide While MC can exist by prescription, long use of
attempt to incorporate under existing statutory corporate powers cannot silent the state. Its existence
authority, coupled with the exercise of corporate can still be assailed by the state. But no collateralattack
powers, and recognized by the courts as such on the shall lie against a MC.
ground of public policy in all proceedings exp direct
attack by a state questioning its corporate existence. An inquiry into the legal existence of a MC is reserved to
the state in a- DIRECT PROCEEDING FOR QUO
Elements of a De Facto Municipal Corporation (VACA) WARRANTO.

1. Valid law authorizing incorporation
2. Attempt in good faith to organize it
3. Colorable compliance with law
4. Assumption of corporate powers.
When is De Facto status denied
When there is an absence of any legislative act to give
vitality to its creation or when the legislative act is an
unconstitutional statute.
But the prohibition on collateral attack applies only
when MC is a de facto. But a nullity, the rule is that its
existence may be questioned collaterally or directly in
any action or proceeding by any whose rights or
interests are affected thereby, including the citizens of
the territory incorporated unless they are estopped
from their conduct from doing so.
De Facto may become De Jure
Through legislative recognition or validation by the
State.
Law on Public Corporation- Largo Maria Ignacia A. Alba
The state may be estopped from denying the validity.

Chapter 8 2. Provincial Relations with CC and Municipalities

POWER RELATIONS WITH NATIONAL GOVERNMENT, The province, through the governor, shall ensure that
SUPREME COURT, PRESIDENT AND CONGRESS; INTER- every CC and municipality within its territorial
GOVERNMENTAL RELATIONS AND HIERARCHICAL jurisdiction acts within the scope of its prescribed
RELATIONS AMONG LGUs powers and functions.

Political Law HUC and IC shall be independent of the province.

Deals mainly in the study of the distribution of powers 3. City and Municipal Relations with Component
to, and relationship of, the different governmental Barangays
organs.
The city or municipality, through the city or municipal
LGUs and NG in General; LGUs are agents of the State Mayor concerned, shall exercise general supervision
over component barangays to ensure that said
Municipal governments are only agents of the NG. Local barangays act within the scope of their prescribed
councils exercise only delegated legislative powers powers and functions.
conferred on them by Congress.
Two types of reviews by a Mother LGU of acts of
The delegate cannot be superior to the principal. Component LGU
LGUs and the Supreme Court; LGUs’ acts are subject to 1. Executive: Local Chief Executive (LCE) of Mother
Judicial Review LGU reviews EOs of LCE of Component LGU.
The judicial power shall be vested in one SC and in such
Governor Reviews all EO
lower courts as may be established by laws. promulgated by the CC or
municipal Mayor within its
All cases involving constitutionality of ordinances shall jurisdiction
be heard by the SC en banc. City or Municipal Mayor Reviews all EO
promulgated by the
LGUs and the President: President exercises General Punong Barangay within
Supervision its jurisdiction

LGUs and Congress: LGUs derive their existence and

powers Congress Copies of such orders shall be forwarded to the Gov or
Mayor 3 days from their issuance
Mother LGU and Component LGU: Mother LGU
reviews acts of component LGU Failure to act on said EO within 30 days after
submission, the EO shall be deemed consisted with law
1. In general
and therefore valid
Provinces with respect to CC and Municipalities, and
cities and municipalities with respect to component
barangays shall ensure that the acts of their component
units are within the scope of their prescribed powers
and functions.
Law on Public Corporation- Largo
2. Legislative: Sanggunian of Mother LGU reviews
ordinances of Sanggunian and EOs of LCE of
Component LGU.
CC and Municipal Within 3 days after
Ordinances and approval the secretary of
Resolution the sannguniang
panlungsod or bayan shall
forward to the
Sangguniang Panlalawigan
for reiview
Within 30 days after
receipts of copies, the
Sannguniang Panlalawigan
shall examine the
documents or transmit
them:
-to the provincial atty or
-if there be none , to the
provincial prosecutor
Within 10 days they shall
inform the SP in writing of
his comments or reco
SP can declare it invalid in
whole or in part.
No action after 30 days,
presumed valid.
Barangay Ordinances Within 10 days after its
enactment, the
sangguniang barangay
shall furnish copies of all
barangay ordinances to
the sangguniang
panlungsod or bayan won
consistent will law or
ordinances
The Spanlungsod or
Sbayan fails to take action
within 30 days, deemed
approved
Inconsistent with law,
return with comments
Maria Ignacia A. Alba
LGUs and National Agencies and Offices (with project
implementation functions); Prior consultation and
approval before implementation
LGUs and National Agencies, offices and GOCCs ( with
field units in the LGU); Monthly Reportorial
Requirement for Information and Guidance
LGUs and National Agencies, offices and GOCCs (with
environmental programs): Consultation
LGUs and the PNP, Fire Protection and Jail
Management Personnel; Operational Supervision and
control by LGU
***read Section 51 of RA 6975 or page 86
LGUs and NGOs; LGUs shall support and may give
assistance to NGOs
Chapter 9
LOCAL TAXATION AND RELATED POWERS AND
PRIVILEGES
Power to Create Sources of Revenue and to Levy
Taxes, Fees and Charges
1. Local Taxation Power
Whuile the LG’s general power to tax is constitutionally
guaranteed, such that no law can take that away from
them, their specific power to tax still remains a
delegated power subject to law.
Exemptions from payment of real property taxes: OCU
Ownership Exemptions owned by the Republic, a
province, a city, a muni, a
brgy, a registered
cooperative
Character Exemption Charitable insti, houses
and temples of prayer like
churches, non-profit or
religious cemeteries
Usage Exemption Used for religious,
charitable educational
purposes
Local water districts
**all other exemptions previously granted are
withdrawn upon effectivity of LGC
Law on Public Corporation- Largo Maria Ignacia A. Alba
2. Construction of Local Taxation c. Taxes on estates, inheritance, gifts, legacies and
other acquisitions mortis cause, except as
Strictly against the LGU and liberally in favor of the tax otherwise provided in the Code
payer. d. Custom duties, registration fees of vessels and
Tax exemption construed strictly against the person wharfage on wharves, tonnage dues and all
claiming it. other kinds of wharfage dues except when
wharfage is constructed and maintained by the
3. Fundamental Principles in Local Taxation LGU concerned
e. Taxes, fees and charges and other impositions
The following fundamental principles shall govern the
upon goods carried into or out of, or passing
exercise of the taxing and other revenue-raising powers
through, the territorial jurisdiction of LGU in
of LGUs:
guise of charges for wharfage, tolls for bridges
a. Taxation shall be UNIFORM in each LGU or otherwise, or other taxes, fees or charges in
b. Taxes, fees, charges and other impositions shall: any form whatsoever upon such goods or
- Be equitable and based as far as practicable merchandise
on the taxpayers’ ability to pay f. Taxes, fees or chages on agricultural and
- Be levied and collected only for public aquatic products when sold by marginal farmers
purposes or fishermen
- Not be unjust, excessive, oppressive, or g. Business Enterprises certified to by the Board of
confiscatory Investments as pioneer or non pioneer for
- Not be contrary to law, public policy, period of 6 and 4 years
national economic policy, or in restraint of h. Excise taxes on articles enumerated under NIRC
trade i. VAT
c. The collection of local taxes, fees, charges, and j. Transporation contractors and transportation of
other imposition shall in no case be let to any passengers and freight and common carriers by
PRIVATE PERSON air, land, or water
d. The revenue collected pursuant to the k. Reinsurance or retrocession
provisions of the Code shall inure SOLELY to the l. Motor vehicles and for the issuance all kinds of
benefit of, and be subject to disposition by the licenses or permits for driving thereof, except
LGU tricycles
e. Each LGU shall as far as practicable EVOLVE a m. Philippine products actually exported
progressive system of taxation. n. Country Side and BBE

4. Taxing Authority
Allocation of Shares in the IRA
Exercised by the Sanggunian of the LGU through an
Provinces 23%
appropriate ordinance. Cities 23%
Municipalities 34%
5. Common Limitation on the Taxing Powers
Barangays 20%
Unless provided by the Code, the exercise of taxing
power shall not extend to the levy of the following:
Formula
a. Income tax, except when levied on banks and
Population 50%
other financial institution Land Area 25%
b. Documentary Stamp Tax Equal Sharing 25%
Law on Public Corporation- Largo
Chapter 10
LOCAL POLICE POWER
Police Power (PP)
Police Power- inherent power of the State to regulate
conduct for the promotion of the general welfare.
PP not inherent in LGUs
PP essentially legislative in character and is inherently
vested in Congress. It is inherent in the State but not in
Municipal Corporations.
Before MC can exercise PP, there must be a valid
delegation of power by the legislature which may be
through express delegation or inferred by the mere fact
of creation the MC.
Section 16 of LGC, General Welfare Clause (GWC)
Congress delegates PP to LGU through this clause.
The GWC has 2 branches:
 One branch attaches itself to the main trunk
of municipal authority, and relates to such
ordinances and regulations as may be nece
to carry into effect and discharge the
powers and duties conferred upon the
municipal council by law.
 Second branch is much more independent
of the specific functions of the councils. It
authorizes such ordinances as shall seem
nece and proper to provide for the health
and safety, promote the prosperity,
improve the morals, peace, good order,
comfort, and convenience of the
municipality and the inhabitants thereof
and for the protection of property therein.
Maria Ignacia A. Alba
Requisites for Valid Exercise of PP
Requisites for a valid ordinance: (C-U-P-T-U-P)
1. Must not contravene the Consti or any statute
2. Must not be unfair or oppressive
3. Must not be partial or discriminatory
4. Must not prohibit but regulate trade
5. Must be general & consistent with public policy
6. Must not be unreasonable
Requisites for a valid exercise of PP
1. Lawful Subject – interests of the public
generally, as distinguished from those of a
particular class, require interference of the
State
2. Lawful Means – the means employed are
reasonably necessary for the attainment of the
object sought to be accomplished and not
unduly oppressive upon individuals
Interpretation of GWC
Interpreted liberally.
Territorial Limitations
Boundaries, only within jurisdiction.
Chapter 11
LOCAL EMINIENT DOMAIN POWER
Eminent Domain (ED)
Eminent Domain is the right or power of a sovereign
state to appropriate private property to particular uses
to promote public welfare.
Delegated Power
ED is essentially legislative in nature. Such power may
be validly delegated to LGUs, other public entities and
public utilities, although the scope of this delegated
legislative power is nece narrower than that of the
delegating authority and may only be exercised in strict
compliance with the terms of the delegating law.
Not inherent in MC, there must be a law conferring the
power
Law on Public Corporation- Largo Maria Ignacia A. Alba
How Courts determine won the MC can exercise ED Chapter 12

There must be: POWER TO RECLASSIFY LANDS

1. A law or authority that exists for the exercise of How exercised

the right of ED
2. The right or authority is being exercised in  A city or municipality
accordance with the law  Through an ordinance
 Passed by the Sanggunian
Requirements for Local ED  After conducting public hearings for the
purpose
1. It is exercised through its chief executive and
acting pursuant to an ordinance
2. It is for public use, or purpose, or welfare for Grounds
the benefit of the poor and the landless
3. Payment of just compensation 1. When the land ceases to be economically
4. A valid and definite offer has been previously feasible and sound for agri purposes as
made to the owner, and such offer was not determined by the DAR
accepted. 2. Where the land shall have substantially greater
economic value for residential, commercial, or
Public Purpose industrial purposes, as determined by the
Sanggunian concerned,
1. Socialized Housing
2. Construction or extension of roads, streets, Limitation
sidewalks, viaducts, bridges, ferries, levees,
wharves, or piers Such reclassification shall be limited to the ff percentage
3. Construction or improvement of public of the total agricultural land area at the time of the
buildings passage of the ordinance
4. Establishment of parks, playgrounds, or plazas
HUC and IC 15%
5. Establishment of market places CC and 1st to 3rd Class 10%
6. Construction of artesian wells or water supply Municipalities
systems 4th to 6th Class 5%
7. Establishment of cemeteries or crematories Municipalities
8. Establishment of drainage systems
9. Construction of irrigation canals or dams
Power of the President
10. Establishment of nurseries, health centers or
hospitals The President may authorize a city or muni to reclassify
11. Establishment of abattoirs lands in excess of the limitations when:
12. Building of research, breeding, or dispersal
centers for animals 1. when public interest so requires and
2. upon recommendation of the National
Economic and Development Authority
Law on Public Corporation- Largo
Chapter 13
CLOSURE AND OPENING OF
ROAD, ALLEY, PARK, OR SQUARE (R-A-P-S)
LGU may, pursuant to an ordinance, permanently or
temporarily close or open any local road, alley, park or
square falling within its jurisdiction.
Source
Expressly provided for by law but is submitted that such
power is deemed implied in the GW power of every LGU
Object
Closure of may be permanent or temporary. It may
involve:
 Local R-A-P-S
 National R-A-P-S
Permanent Closure
1. Ordinance authorizing it must be approved by
at least 2/3 of all the members of the sangguian
concerned and
2. When nece, an adequate substitute for the
public facility that is subject to the closure is
provided
3. Provisions for maintenance of public safety is
made
4. There must be compelling reason or sufficient
justification
Maria Ignacia A. Alba
No RAPS shall be temporarily closed for athletic,
cultural, or civil activities NOT officially sponsored,
recognized, or approved by LGUs.
LGUs may temporarily close areas where shopping
malls, Sunday, flea or night market or shopping areas
may be established.
**NO JUST COMPENSATION IN GENERAL
**Power to close discretionary to the LGU
Chapter 14
CORPORATE POWERS
(Co-S-U-P-En-O)
1. Power to have continuous succession in its
CORPORATE name
2. Power to SUE and be sued
3. Power to have and USE a corporate seal
4. Power to acquire and convey real or personal
PROPERTY
5. Power to ENTER into contracts
6. Power to exercise such OTHER powers as are
granted to corporations, subject to the
limitations provided in the LGC and other Laws

Temporarily Closure

1. Must be for:
a. Actual emergency
b. Fiesta Celebrations (not exceed 9 days)
c. Public Rallies
d. Agricultural or Industrial Fairs
e. Undertaking of Public Works and
Highways
f. Telecommunications
g. Water works projects
2. The duration must be specified by the LCE in a
written order